23andMe has announced this week that it will slash 40% of its workforce, roughly equating to 200 employees. The personal genomics and biotechnology firm further stated that it has decided to terminate the upcoming development of all its therapy programmes as part of a restructuring initiative.
Founder and CEO Anne Wojcicki’s statement on the same reads, “We are taking these difficult but necessary actions as we restructure 23andMe and focus on the long-term success of our core consumer business and research partnerships.”
As part of this restructuring, 23andMe is actively exploring strategic options for its existing therapy pipeline, which may include licensing agreements or asset sales. Wojcicki, who has been working to take the company private since April, faces mounting challenges following the resignation of 23andMe’s independent board members in September due to an unsatisfactory take-private bid.
Last July, she had proposed to acquire the publicly listed company’s every remaining share at 40 cents per share. After the announcement of the firm’s cost-cutting strategies, her company anticipates to save over $35 million.
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